Despite the obvious drawbacks of foreclosures and the huge waves of devastation many families have suffered at their hands, it appears there may be a small silver lining to the crisis. Charities are beginning to report an increase in donated homes coming from foreclosures.
Good For Some
USA Today reported that Bank of America donated over 150 foreclosed homes to charities in 2011. BOA also has announced plans to donate 1,200 more foreclosures in 2012. Wells Fargo also has participated in the home donations, which have nearly quadrupled over the last year. The donating of homes is becoming more prevalent in neighborhoods where home values are already low and the likelihood of the home being otherwise torn down is high.
By donating the home, the homeowner can eliminate their mortgage expenses and earn tax breaks for their donation, as well as provide the lender with similar benefits. The neighborhood is also likely to benefit by not suffering the devastating effects a foreclosure can also bring upon homes nearby. Further, Habitat for Humanity has been able to reach more families in need by rehabbing foreclosures rather than having to build homes from scratch.